Paraguay Establishes Special Tariffs for Convergent Industries Amid Criticism from Energy Experts
Paraguay's Minister of Industry and Commerce, Javier Giménez, has announced special tariffs for convergent industries like AI and cloud computing, set at USD 30 and USD 38, despite an average cost of USD 27.56 plus transmission costs. While Giménez emphasizes the need for these tariffs to boost competitiveness without subsidies, the decision has drawn criticism from energy experts, including plans for a complaint from Adolfo Villalba of the electricity workers' union.
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Paraguay's Minister of Industry and Commerce, Javier Giménez, defended the establishment of special tariffs for convergent industries, including AI and cloud computing, through two newly issued decrees. The tariffs are set at USD 30 and USD 38, compared to an average cost of USD 27.56 plus transmission costs.
Giménez stated that no subsidies would be provided, emphasizing the technical basis for enhancing Paraguay's competitiveness. He noted that a 100 MW data center would only represent 2% of the country's peak demand of 5,752 MW, ensuring energy security.
The decrees, N° 5306 and N° 5307, create a framework for these industries and expand renewable energy policies. However, the decisions faced backlash from energy sector experts, including Adolfo Villalba from the electricity workers' union, who plans to file a complaint against the tariffs.
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